How I don't 'technically' pay rent

Our friends over at Financy have launched a new How She Did It series, featuring money tips that can help women. In this first instalment, Financy Editor and Founder Bianca Hartge-Hazelman shares how she uses the income from her rental property to pay off her mortgage and fund the rent she pays elsewhere. That means she doesn't 'technically' pay rent. 

For me, the desire to pay down the mortgage and save some money to start came down to having a brutal and unemotional look at my own numbers with good old pen and paper.

This led me to consider how a seachange away from the big smoke could allow me to rent out my dream home for significantly more than I would pay in renting a property elsewhere, oh and using tax to help offset your rental costs for a home-based business also helps!

Let’s start with the numbers.

  • What it costs me in rent now: $500 per week.
  • The amount of rent I can claim as a business tax deduction: $600 – 30% = $180. Which takes my rent to $420.
  • What my investment property earns in rental income: $1200, which has already factored in real estate management fees.
  • My weekly mortgage repayments on that investment property: $700.
  • Crunch time: $1200 – $700 = $500 left to pay for my rent elsewhere.
  • But because some of my rent can be claimed as a business tax deduction, the numbers are: $500 – $420 = $80 left over to pay down existing mortgage.

None of this is rocket science, in fact using one asset to pay for its debt, and provide income is a prudent investment strategy.

But often making the decision to rent out the more expensive property can be a difficult one – especially if that property is your dream house or location.

If you’ve got a How She Did It, that you believe might help other women, let us know!


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Bianca Hartge-Hazelman

Bianca Hartge-Hazelman is the Founder & Chief Executive Officer of Financy, a finance publication for women. She started the online magazine while on maternity leave with her second daughter, and after realising that the traditional dull-lens applied to financial content was not empowering enough women towards financial independence -- nor did it resonate deeply with the lifestyle pursuits of all women. Financy corrects this communication challenge through the delivering of personal finance content that taps into the female psyche, connecting women with their goals, and uses tools of entertainment, engagement, education and style to inspire women to live their best life.

Hartge-Hazelman has worked for some of Australia's largest media companies, and has written for the Australian Financial Review, Sydney Morning Herald, The Age; as well as digital programs - including Channel Nine’s Financial Review Sunday program, Fairfax Digital, ABC Radio, ABC’s Stateline, Sky News, Channel Seven, The Weather Channel, WIN News and the Finance News Network in Sydney.

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